California Real Estate Broker Exam Flashcards
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How many questions are on the California Real Estate Broker exam?
200 multiple-choice questions.
What score is required to pass the California Broker exam?
75% — you must answer 75% of the questions correctly.
What is the examination fee for the California Broker exam?
$150.
How many questions can you miss and still pass the broker exam?
Up to 50 — since you need 150 of 200 correct.
What is the difference between a general and a special (limited) agent?
A general agent can bind the principal in a broad range of transactions (e.g., a property manager); a special agent is authorized for a single, specific transaction (e.g., a listing broker in one sale).
What are the fiduciary duties a broker owes a client?
Care, Obedience, Loyalty, Disclosure, Accounting, and Confidentiality (often recalled as OLD CAR).
What is the purpose of a trust (impound) account for a broker?
To hold clients' funds (deposits, rents) separately from the broker's own funds, preventing commingling and conversion.
What is the difference between a mortgage and a deed of trust?
A mortgage involves two parties (borrower/lender) and generally requires judicial foreclosure; a deed of trust adds a neutral trustee and permits non-judicial foreclosure via power of sale. California primarily uses deeds of trust.
What is the doctrine of 'caveat emptor' versus a broker's disclosure duty?
'Let the buyer beware' is limited in real estate — brokers and sellers must disclose known material facts affecting value or desirability, so silence on material defects can be actionable.
What is a 1031 (like-kind) exchange?
A tax-deferred exchange of investment or business real property for like-kind property, deferring capital gains recognition when requirements are met.
What distinguishes real property from personal property?
Real property is land and things permanently affixed (fixtures) plus appurtenant rights; personal property (chattel) is movable and not permanently attached.
What is the difference between joint tenancy and tenancy in common?
Joint tenancy carries the right of survivorship and requires the four unities; tenancy in common allows unequal, separately transferable shares with no survivorship.
What are the essential elements of a valid real estate contract?
Capable parties, mutual consent (offer and acceptance), lawful object, and consideration; contracts to convey real property must also be in writing under the Statute of Frauds.
What is fee simple absolute?
The most complete form of ownership — a freehold estate of potentially infinite duration, freely inheritable and transferable.